The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-06-16
The Money Furnished Kershaw e. Co.
Locked Up by Legal Proceedings,
And that Big Firm Fails To Go Through the
Clearing g-House-Wilshire. Eckert & Co.
Sued by Resented & Co. for ST. 100000
THE CHICAGO BREAK.
Another Day of Great Excitement, and the
Market Still In Critical Shape.


posted for failure to settle margins and, while
it is utter impossibility to arrive at anything
| definite in the matter OF liabilities of the sns-
pended houses, it is safe to say that 20 900. 600
bushels of wheat are involved. aud that the
loss this immense block is not less than
So, ,000 900. total of about So O00, 900 il two
| days The suspended houses are:
G. j. Kershaw 81 Co.. Crosby 81 Co., Gregg,
| Son & Co.. S, G. Eldridge & Co.. Edwards &
| Co.. Hord Bros. & Co, T. L. Baldwin G. Co +,
J. H. Youst & Co., B. j. McCleary & Co, H. j.
| Sheldon, S. c. Orr, NJ b. Crafts & Co. Pickering
| & Co, II. X. Matthews. Hibbard & Co., NJ. s.
| Robinson & Co, and Youst & Breary.
| Some of these firms announced that they will
| be all right in day or two.
| To-day's lowest figure tor wheat. 60 cents. was
the lowest since 1862, when wheat sold for &c.
In 1886 the lowest price was 693c.
Spectators and their brokers knew when they
went homo last night that disastrous aud irre-
sstble panic that would sweep away prices and
fortunes the same moment was only to be
averted to-day by z. j. Kershaw 6 Co. standing
up and paying all the enormous demands that
would be made against them. Last night the
firm out of money, with demands for quar-
ter OF a million dollars then in the Office that
they could not meet. 1t therefore CRATE
full sound to the street when Kershaw, at
o'clock, hurried into his Office and announced
that he had money enough in the bank at that
hour to pay all that he owed and to margin his
trades down to the market and below it. The
announcement went from lip to lip and from
Office to Office Smiles broke upon faces that
were dull and heavy with the excite
ment, the fatigue and the anxiety of
night full of suspense. Kershaw. when he
made the announcement. believed that he
promising just what he could fulfill. Events
proved that he could not fulfill it, however. He
had just hurried from the American Exchange
National Bank, where he had held, since
o'clock, consultation with President Irwin and
Mr.. Wiltshire of Cincinnati and where $6U0, 900
had been placed to his credit. Kershaw felt as
if the day was saved, and SO did the street. I'm
n,ediately after the opening of the Board of
Trade the secretary raped for silence. II was
difficult thing to obtain. But when he finally
prevailed. he read the following from Kershaw
& Co.:
"Gentlemen-We prepared to pay all our
clearing house differences and to margin below
the market. G. j. kERSHAw 81 Co"
A yell of delight broke out at this, and the
galleries, which were crowded to Ruffocation by
ladies, responded by the waving of handerchiefs.
The few announcements of several small fail
ures that followed did not count. These
of Messrs. B. J. McCleary & Co., j. H. Yorke Sc
Co. and S. c. Orr Wheat advanced at once a
cent to 76c for July. The panic was over tenn
porarily. AS IL o'clock approached the crowd
knew that the most dangerous moment of the
day at hand. The clearing sheets needed
to be in, and the differences of the day before
settled. ~
Immediately after IL o'clock came the an
nouncement Of another batch Of suspensions.
These were T. E. Belding & Co., Crosby & Co.
and Pickering g. Co. Crosby's failure produced
sensation. He has been rich man in the
market for ten years, and the trade supposed he
impregnable. Then, at 1130. came the
nouncement of the suspension of NJ B. Crafts tS Co.
and NJ S. Robinson 81 Co, the latter presuma-
bly, substantial house. The crowd thought that
the crisis assed at ii o'clock when the
clearing sheets were in, but here WAS another
terrible disappointment G. j. Kershaw & Co.'S
amounting $500. 900, had been gar nished
10 A. NJ by Rosenfeld g. Co. The latte err, learn
ing that Wiltshire, of Cincinnati, was in the city.
and that he had taken care of Kershaw 81 Co.
while he had allowed them to 60 to the wall,
hurried to their lawyer. Garushee papers were
at once procured and the money to Kershaw 81
CO. g credit at the American Exchange Bank
attached. This occurred while the Board
of Trade in fancied security. 1t was not
q check for 5000, 600 for certificates, failed to
turn that there was any mixing OF
trouble. At noon the checks had
not returned, and there was CONSERVATION.
It began to leak out on the floor. and July
wheat dropped to 70Ic Trading was suspended.
The hands of the clock had passed the noon hour.
and Kershaws checks had not arrived. Con-
trary to rule, the clearing hour extended five
minutes. Still certified checks Then the
official announcement was issued that hershaw
s. Co had failed 60 through. The president
of the board directed that the announcement be
not made from the gallery, but this simply in
creased the panic After it was definitely
known that Kershaw & Co had not gone through
the clearing house, and that their bank account
held up, there was less depression than
while the pit was awaiting the news. The cause
of Kershaws trouble was known. and the crowd
felt that kershaw. with $500, 900 in the bank
was even If garnished. better creditor than
without that 5000, 900 which Wiltshire had
brought.
Besides, the buying by the big who had
other interests imperilec by panic. turned the
tom price-July sold up to II cents between II
and o'clock.
During the noon recess another lightning
change act in this very singular drama occurred.
Previous to the adjournment member of the
firm of Rossnfeld &S Co had stated that he mad
authorized his attorney TO attach or garnishee
the 5000. 600 in question.
A member of the firm of Kershaw & Co.
stated that the money had been so tied up, and
the sum was between 500, 600 and $1,000 A
half nour later the statement made at the
bank that the story in everybodys mouth was
not true. About the same time Rosenfeld q Go.
denied that they had garnished Kershaws de-
posit. Evidently the nice distinction is made
that thew elect to call il clique money,
and not Kershaws. The banks statement may
be susceptible to the explanation that it
is discovered that the attachment of
garnishee proceedings will not hold. The fact
remains that the money placed deposit by
the clique principal about $500. 900, is still tied
up by some sort of proceeding, and that
legal fight for the enormous Jack Dot has
been inaugurated How it will end or what the
method employed to release tho fund will be,
cannot now be stated. The tieipg-up of the
sS00.0 virtually tied up the market. and the
last hour of the long session was uneventful as
to the amount OF business done Every body
sad "a All hafO m
move. A few determined men of large means
stood ready TO render what help they could by